Side Hustle Knowledge Assessment

The video discusses the growing trend of side hustles, highlighting the motivations behind them and the importance of proper planning. It uses examples like Jenny's hedgehog sweater business and Tim's textbook resale plan to illustrate potential challenges and financial considerations. The video emphasizes the need for separate financial accounts, tax planning, and evaluating the viability of turning a side hustle into a full-time job. It concludes by stressing that a side hustle should contribute to overall happiness.

What are the two main reasons people start side hustles?

• To avoid paying taxes

• To meet new people and learn new skills

• To earn extra income and transition from their current job

• To gain more free time and travel

What percentage of side-gig workers make less than $500 a month?

• 50%

• 85%

• 10%

• 30%

Which platform has the highest average profit for side hustlers?

• Lyft

• AirBnB

• Etsy

• Uber

What is a major risk of joining a network marketing company?

• High initial investment

• Only 1% of participants turn a profit

• Lack of product variety

• Limited market reach

What should Tim consider before investing in textbooks?

• The storage and shipping costs

• The color of the book covers

• The popularity of the subject

• The number of pages in each book

Why is it important for Kendra to separate her personal and business finances?

• To avoid paying taxes

• To clearly see the profitability of her side hustle

• To impress her bank

• To get a better credit score

What percentage of income should be set aside for taxes in the first year of a side hustle?

• 10%

• 15%

• 30%

• 25%

What should Jenny ensure before quitting her day job for her side hustle?

• She has a business partner

• Her side hustle profit is at least half of her day job income

• She has a marketing plan

• She has a new job lined up

What is a common reason small businesses fail?

• High taxes

• Too many employees

• Cash flow problems

• Lack of interest

Why should a side hustle be something you enjoy?

• To make it easier to market

• To ensure it contributes to your overall happiness

• To attract more customers

• To reduce stress